Two reasons for consolidating debt.
There are two reasons most people look to consolidate their debt. The first, and probably most common reason is to lower payments. Debt consolidation usually spreads out debt payments from 3-5 years to 15 years or longer.

The other reason is to lower the cost of interest. By exchanging a 18% credit card debt for a 8% home equity loan, the borrower can save 10% worth of interest payments and change it into a tax deduction.

Other effects of debt consolidation.
A result of consolidating debts is that instead of 10 separate payments to 10 separate creditors, make only one payment to one creditor. One extra benefit of debt consolidation is the simplicity of only having one payment vs. the 10 payments. 9 fewer bills to read, 9 fewer checks to write and 9 fewer payments to mail (and hope they get there on time).

Debt consolidation loans and mortgages.
The most common way to consolidate debts is a debt consolidation loan or a 2nd or 3rd mortgage that consolidates debts by borrowing against the equity in real estate (usually a personal home) and paying off debts. Debt consolidation financing has become a large part of the lending market in recent years.

Debt consolidation even with bad credit?
Many lenders even have options for consumers with less than perfect credit. A debt consolidation loan even with bad credit is now common. Debt consolidation loans are even available online. Several lenders and brokers advertise online debt consolidation loans.

Consolidating debt for tax savings?
Some even advertise debt consolidation mortgages as a way to save money on taxes by increasing your home interest deduction.